Mid-sized businesses support move to a 31 December tax year end

More than 91% of medium-sized businesses support the idea of changing the tax year to 31 December to help simplify the tax system according to new research from BDO.This is one of the dates being considered by the Office of Tax Simplification in its discussion of the merits of moving the year end from 5 April.

The change would need to be planned carefully with longer filing deadlines to help businesses make the transition. However despite the short-term challenges mid-market businesses would support this disruption to make the UK tax system fit for the 21st century.

BDO tax partner Paul Falvey said: ‘Businesses are hoping that a rethink of the tax system can help them flourish following the challenges of Brexit and Covid-19. Changing the tax year to 31 December is supported by businesses of all sizes and will be particularly helpful...